The third quarter of 2019 saw the same stabilized growth of Q2 in both new inventory and median sales price. Consistent with a slower summer season, demand cooled with a slight bump of activity in August. Home values are up 2%, with average days on market increasing 8%, showing although buyers are taking their time, pricing is in line with market demand. Single-family homes sales continue to be strong, particularly in Manatee County, but even a slowing condominium market is appreciating, albeit modestly.
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The Latest in Luxury
Reinforced by modest price reductions, the third quarter of the 2019 illustrated the competitive landscape of today’s luxury market. Total homes for sale and new inventory are up 9.1% and 4.2%, fueled largely by the onset of listing season and new construction. More dramatic inventory increases in the condominium category are prompting sellers of resales to once again reevaluate their competitive set in advance of the rush of activity early 2020. As we head into the final quarter, we expect to see additional benchmark sales and a more value-aware market following a decade of course correction and growth.
Learn more from Michael Saunders, as she discusses the global second-home market and the identity of today’s discerning buyer following a trip to Athens, Greece for the Leading Real Estate Companies of the World Global Symposium.
We’re local. We’re global. Take a look at the full luxury market report for Sarasota, Manatee and Charlotte County.
Normal is the new normal.
Following a decade of exceptional growth on the Gulf Coast, the recent normalization of the luxury market has some questioning its future prosperity. While some segments have perhaps become temporarily over saturated, as is the case with Sarasota’s condominium market, others continue to perform strongly and showcase a healthy balance of demand and inventory. Historically a slower time of year, the third quarter saw the highest concentration of new inventory when compared to the same July-September time frame over the last 10 years. This increased amount of choice on the cusp of when buyer activity truly kicks into gear should not be confused with a lack of demand. 2019 though proclaimed the year of the buyer – is the year of the confident buyer. Couple that with the year of the confident builder and sellers of luxury property are facing a broader competitive set.
Value-driven at every level.
Today’s luxury buyer is confident, savvy and younger. Though the Gulf Coast is largely known for it’s large population of Baby Boomers, younger generations that have lived their entire life with a sense of wealth are becoming more active in the second-home market – bringing with them a new set of values that influence decision-making. According to Luxury Portfolio International’s latest White Paper, The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets, about half of the qualified luxury real estate consumer market is under the age of 40 and touts an impressive asset portfolio despite being less experienced in real estate investment than older generations.
Affluent consumers around the globe are also in acquisition mode and turning their attention to resort-style markets for their 3rd, 4th and 5th homes to satisfy both financial and overall wellness goals.
The paper also found that 96% of luxury consumers take at least one aspect of wellness seriously when considering their daily routine.
Comment below with market questions you would like to see answered by Michael Saunders & Company President Drayton Saunders next quarter, or reach out to one of our highly-qualified agents to discuss how the market looks in your neighborhood.